What must a Boulder Designs franchisee do regarding payment of amounts due to the franchisor before opening?
Boulder_Designs Franchise · 2025 FDDAnswer from 2025 FDD Document
Before opening the Franchised Business and commencing business, Franchisee must:
- viii. pay in full all amounts due to Franchisor, or execute the Promissory Note and Security Agreement (attached hereto as Exhibit 9, if applicable) for any amounts due Franchisor.
Source: Item 22 — CONTRACTS (FDD page 50)
What This Means (2025 FDD)
According to Boulder Designs' 2025 Franchise Disclosure Document, before opening their franchised business, a franchisee must pay all amounts due to Boulder Designs in full. Alternatively, the franchisee can execute a Promissory Note and Security Agreement for any outstanding amounts, if applicable.
This requirement ensures that Boulder Designs franchisees are financially current with the franchisor before commencing operations. This is a fairly standard practice in franchising, as it protects the franchisor's financial interests and ensures that franchisees have met their initial financial obligations.
It is important for prospective Boulder Designs franchisees to understand the full scope of their financial obligations before opening, including franchise fees, inventory costs, and any other amounts due to the franchisor. Reviewing Exhibit 9, which contains the Promissory Note and Security Agreement, will be essential if full payment cannot be made upfront. Franchisees should carefully consider their financial situation and ability to meet these obligations before signing the Franchise Agreement.